Minnesota Economic Development

Number of local economic development organizations:

At least 300. A search of a current online DEED database found
215 cities with a population over 1,000 reported having an active
economic development authority (EDA). A sample of the remaining
500-plus cities with a population under 1,000 indicates that another
50 to 70 very small cities likely have a formal EDA. Another two
dozen counties with EDAs were identified, along with more than 40
quasi-public and nonprofit organizations representing a variety
of city, multicity and regional interests. Chambers of commerce
were not counted.

Unique economic development tools or incentives:

The state has designated six cities-Breckenridge, Dilworth, East
Grand Forks, Moorhead, Ortonville and Duluthin its Enterprise
Zone Program, which offers a variety of business tax credits for
businesses that create investment and job creation or retention
in these locations.

Popular assistance tools or incentives:

Tax increment financing (TIF) is widely used, as more than 400
separate local government organizations in the state managed 1,617
revenue-generating TIF districts in 1998. Many communities also
use revolving loan funds, with more than 237 in operation as of
1996.

Cities also have fairly wide latitude in customizing incentive
packages, including such things as build-to-suit construction incentives,
small business incubators, legal and accounting services, and buy-downs
for land, lease, interest and utilities.

Notable:

In 1984, less than 2 percent of the state's property tax base was
in TIF districts. By 1991, it hit more than 6 percent and has floated
between 6 percent and 7 percent ever since.